Advertising Disclosure

Retirees should keep an eye on the mailbox after Christmas

Statements from the Social Security Administration will have key information

Updated:

Avatar photo
By:
Avatar photo

Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.
wolfgang-vrede-unsplash

Photo by Wolfgang Vrede on Unsplash

Key Insights

  • Social Security is notifying beneficiaries this month about how much of their 2025 benefits may be subject to federal income taxes.
  • The statements don’t mean a new tax—they estimate taxable amounts based on income rules that have been in place for decades.
  • Millions of retirees could owe taxes on up to 85% of their benefits, depending on their total income.

Social Security beneficiaries are receiving updated statements this month that show how much of their total benefits received in 2025 may be subject to federal income taxes. The notices are designed to help retirees and other recipients prepare for tax season by clarifying how benefit taxation works and where their income may fall under federal rules.

The statements summarize the total Social Security payments a beneficiary received during 2025 and include a reminder that benefits can be taxable if a person’s overall income exceeds certain thresholds. The Social Security Administration (SSA) emphasizes that the notice is informational and does not represent a bill or a change in tax law.

Why benefits are taxed

Social Security benefits themselves are not automatically taxable. Instead, taxation depends on what the IRS calls a beneficiary’s “combined income,” which includes adjusted gross income, nontaxable interest, and half of Social Security benefits.

Under current law:

  • Single filers with combined income above $25,000 may have a portion of their benefits taxed.
  • Married couples filing jointly face taxation once combined income exceeds $32,000.
  • At higher income levels—above $34,000 for individuals and $44,000 for couples—up to 85% of benefits may be subject to federal income tax.

These income thresholds are not indexed for inflation, meaning more retirees are affected each year as incomes rise.

What the statements show, and don’t show

The statements sent this month outline total benefits paid in 2025 and explain, in general terms, how much could be taxable based on IRS rules. However, they do not calculate a beneficiary’s actual tax liability. That depends on factors such as filing status, other income sources, deductions, and credits.

Tax professionals note that the statements can still be a useful planning tool, especially for retirees who supplement Social Security with withdrawals from retirement accounts, pensions, or part-time work.

Financial advisors encourage beneficiaries to review the statements carefully and consider whether estimated tax payments or withholding adjustments may be needed. Some retirees choose to have federal taxes withheld directly from their Social Security checks to avoid a surprise bill at tax time.

As more Americans rely on Social Security as a core source of retirement income, the annual statements serve as a reminder that benefits and taxes are closely linked, and that understanding those rules can help beneficiaries better manage their finances heading into the new year.